National Investors Take Aim at Twin Cities

Madison Trailways in Burnsville, MN, a town that has become a popular bedroom community for the Twin Cities.

MINNEAPOLIS—Equus Capital Partners, Ltd., a Philadelphia-based private equity fund manager, has just sold Madison Atrium and Madison Trailways in Burnsville, MN, a suburb just south of Minneapolis. San Francisco-based FPA Multifamily, LLC bought the 588-unit apartment portfolio for $72.5 million.

In some ways, the sale was a bit of a surprise, as Equus purchased the value-add portfolio just two years ago and had finished renovations on about half the units. But the demand for apartment properties in this booming region, which has one of the lowest unemployment rates in the nation, was so robust that Equus officials realized they could get a great return even though the renovations were not complete.

“We typically underwrite a five-year hold period,” Greg Curci, vice president of Equus, tells GlobeSt.com. But they also noticed that rental rates in the towns near Burnsville were increasing at a rapid clip, and residents had begun looking for other options. “We were in the draft of that.”